BorgWarner announced that it has signed an agreement to acquire the Traction Systems division of Haldex Group.
“This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions,” says Timothy M. Manganello, chairman and CEO, BorgWarner. “With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will compliment our current portfolio as well as our customer and geographic mix.”
The move is expected to accelerate BorgWarner’s growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles. The acquisition will add industry leading FWD/AWD technologies, with a strong European customer base, to BorgWarner’s existing portfolio of front and rear-wheel drive based products. BorgWarner says this will enable it to provide global customers a broader range of all-wheel drive solutions to meet their vehicle needs.
The purchase price is approximately $205 million (1.425 billion SEK) and represents less than one times estimated 2011 sales. The deal is expected to close in the first quarter of 2011 subject to standard regulatory approvals.
